ROCKY HILL, Conn., Aug 6, 2013 – The Board of Directors of The Connecticut Housing Finance Authority approved $10 million in State Housing Tax Credit Contributions (HTCCs) to non-profit developers of affordable housing and non-profit housing loan funds. Connecticut’s HTCC program provides tax credit awards to the non-profits, which the non-profits then offer to state businesses in exchange for cash contributions to reduce the businesses’ tax liability. Businesses receive a dollar-for-dollar tax credit on their State of Connecticut taxes as well as Federal taxes.
“The HTCC program provides non-profit developers with much-needed funding and provides businesses with an opportunity to invest in affordable housing while reducing their tax liabilities,” said Evonne Klein, Commissioner of Housing and Chairwoman of CHFA’s Board of Directors. “Businesses may even find that their investment in multifamily housing pays off in the future as their own employees move into the units,” Klein added.
The $10 million tax credit program was created by the State Legislature as an incentive to create and preserve affordable housing. The HTCC program is administered by CHFA and the credits are awarded on a competitive basis. Of the $10 million tax credits, $1 million must be set aside for workforce housing, with 2013 credits going to the Live Where You Work Program, a statewide loan fund, and Workforce II Revolving Loan Fund in New Haven. The program requires a $2 million set aside for supportive housing and in 2013, six supportive developments received credits. The maximum amount of tax credits that can be received by any developer is $500,000 per year.
“The HTCC program is crucial because it often provides gap financing that is the difference between going forward and cancelling a project,” said Eric Chatman, President and Executive Director of CHFA. The applications are scored based on six categories including: readiness to proceed, impact on neighborhood revitalization and the extent to which tax credit fund are leveraged with other funds,” he added.
The 2013 tax credits will result in more than 500 new affordable units in cities like Bridgeport, New London and New Haven, but also in smaller communities including Lakeville, Willimantic and Winsted. The complete list of HTCC recipients is attached below.